Training in financial management has gained significant expansion and spread in recent years due to the expansion of markets and the financial inflation the world is going through, Growing competition, growing consumer experience, diversity of procurement methods, inflated bank transactions and various monetary transactions, Hence the importance of training in the field of financial management in order to be a distinguished financial manager and can keep up with the course of the global markets must receive special training in which to ensure that you master all the previous topics.
What financial management will we know in financial management training ?
Financial management is an essential function of any business, Any organization that needs financial resources to obtain material resources, Implementation of production activities and other business processes, and pay suppliers, And so on. What financial management are you falling into? Financial management refers to strategic planning to regulate, direct and control financial obligations in an organization or institution. It also includes applying management principles to the financial assets of the enterprise, It also plays an important role in financial management. What is the function of financial management? Decision and control. Financial plan. Resource allocation. Cash flow management. Dealing with the surplus. Work acquisitions and mergers. Capital budget.
Financial management objectives to be addressed in financial management training
Financial management objectives can be classified as financial management training in several ways. Official objectives, operational objectives and operational objectives are classified.
The official objectives are the overall objectives of the organization. Maximizing return on investment and market value per share can be named the official financial management objective. The objectives of the work are what the organization really wants to do. They focus and help make choices. Expected return on investment, And the cost of capital, property rights standards, Etc. The East with a time period or its acceptable range/limits is fixed taking into account the official goal. Beyond the objectives of the financial management business, the terms of the quantity can be verified. The scope, mix and timing of specific forms of funding are detailed. Official, operational and operational objectives are hierarchically organized, With official objectives at the top (for senior management), and operational objectives in the middle (for middle management), And operational targets below.
Financial management objectives can also be categorized by job. The goal of return, The goal of solvency, Liquidity target, The goal of the evaluation, The goal of risk, Cost target, Etc. Income targets refer to the minimum, average targets and maximum return. What should be the minimum return for this project in order to accept the same project, And what average return should the company accept, The maximum possible return (to increase return risk). Similarly, Targets for solvency, liquidity, market value, etc., can be considered, You should determine the importance of a particular target factor and follow it strongly/how many target factors are required;
1. Maximize profit
Maximizing profit is the stated goal of financial management. Profit is to increase income on expenses. therefore Maximizing profit is maximizing income in terms of expenses, and reduce income expenditures, Or maximize income and reduce expenditures at the same time. Maximize revenue through pricing and range strategies. By increasing the sale price, Revenue can be maximized, Provided that demand does not decrease proportionately. Revenue can be maximized by exploiting the price flexibility of demand factors to increase sales. Expense reductions depend on differences in cost size, input, cost awareness and market conditions. therefore The combination of factors is called profit maximization.
This objective of financial management is the preferred objective for the following reasons:
- Profit is a measure of business success. The more profit, The degree of success has increased.
- Profit is a performance measure. Performance efficiency is represented by profit amounts.
- Profitability is essential for the growth and continuation of any business. Lucrative companies can only think of tomorrow and beyond. He couldn’t help but think about updating and replacing his devices, which can evolve and vary. Profits are the driving force behind eliminating the possibilities that threaten the company’s existence.
- Profit is the primary purpose of the business. It is accepted by the community. Removing anxiety is a social burden. As we know, Satisfactory business activities place a heavy burden on all concerned. Therefore, The profit criterion highlights operational deficiencies. If profit is the criterion of efficiency, You can’t hide your shortcomings.
- Profit is not a sin. As long as your means are good, The profit motive is a socially desirable goal.
We will also detail it as part of the financial management training.
However, Maximizing profit is undesirable. Certain restrictions have been selected. first The concept of profit is vague. For profit several concepts, Like total profit, and profit before tax, And profit after tax, And net profit, and dividable profit, And so on. therefore The reference to profit should be explicit. secondly The maximum long-term or short-term profit must be set clear. Long-term or short-term profit trends vary in nature, focus and strategy. thirdly Maximizing profit size does not take into account. The size of the organization and the level of profit must be linked. Otherwise there is no reasonable explanation for performance or efficiency. 4. Profits must be by time factor. Inflation destroys the value of money. The rupee today is worth more than tomorrow and beyond. Maximizing profit does not take into account the time value of the money.
2. Maximizing profitability
Profits are reported less as an absolute number and more hidden. Profit must be linked to sales, capacity use, production or venture capital. Profits take on greater importance when they are related to the size or size of the factors mentioned above. When that is expressed, Relative profit is called profitability. Profit per sale rupees, Profit per productive unit, Rupees per investment, and so on to be more specific. therefore This goal exceeds the goal of maximizing profit.
Increased profits or roi in rupees per investment is a composite measure. ROI = return or profit/average invested capital.
Sales-divided profit measures sales per rupee and sales divided by investment profit and measures the number of capital fluctuations. The first is a profitability indicator and the latter is an indicator of business activity. The first, last or both can maximize profitability (ROI).
The positive result of this goal is the same as that of most profit. The negative consequences of this goal are the same as those of the purpose of maximizing profit, Except for one side. The target profit is mostly profit and has nothing to do with any rules. But maximizing profitability has to do with sales profits and/or investments. therefore It is a relative measure. That’s the best goal of maximizing profit from this result. But with other restrictions continuing, This goal can also only obtain a “qualified” report of its approval.
3. Maximize EPS
Maximizing earnings per share (EPS) includes maximizing profit after tax on the number of existing shares. This goal is similar to maximizing profit in terms of strengths and needs. It is very specific in terms of the type of profit and the basis on which it is compared. One of the negative aspects is that maximizing EPS can also dry up value due to policy effects.
4. Maximizing liquidity
Liquidity indicates the company’s ability to meet its short-term obligations when due. This capacity depends on the ratio of traded assets to current liabilities, The maturity pattern of current assets and “current liabilities”, And the composition of current assets, The quality of non-cash current assets; the relationship with short-term creditors; relations with bankers, Etc. Turnover is high, The maturity of current assets and current liabilities is exactly the same, The structure of current assets is balanced, The assets in circulation are sound and “flowing”, That is, they can be easily converted into current assets without loss. Being willing to help bankers will help maintain a high level of corporate liquidity. It’s not easy to get all these things and involve cost and risk.
How good is the target? That’s a good goal, Although it’s not helpful. Each company must provide sufficient liquidity to meet its daily obligations. At last Jobs are suffering. Liquidity-rich companies can take advantage of rare opportunities, Such as buying large amounts of inventory when prices are low and lending to borrowers when prices are high. Interest and short-term loans to creditors to take advantage of cash discounts, Etc. Many accumulated benefits. However, High liquidity can lead to inactive cash resources, which should be avoided. Yes Excess liquidity and profitability are opposite, They are contradictory objectives that must be balanced.
Factors influencing financial management that we will address in financial management training
The factors affecting financial management that we face within financial management training are as follows:
- The company’s senior regulatory staff will work hard to increase the relationship with the regulator and make the business environment effective. The Department will establish a development monitoring department and its impact on its financial activities. Internal auditors also ask questions such as how to profit under the law.
- Investors will analyze the company’s solvency to determine whether it is a good investment. Financial professionals contribute their ideas and help companies work without significant debt. CFO also helps increase assets.
- Stock markets, The flows
Market positivity is a distinctive term that we will recognize in financial management training that makes the company an investor’s choice that affects the company’s financial strategy. Positive market training also points to a good economic path. There are many exchanges that can help companies implement their strategies.
Companies help companies work in the short term while maintaining their long-term expansion. Finding the right mix of debt and property rights plays an important role in the company’s success. Failure to access the group may lead to failure. Some corporate credits are loans, lines of credit, bonds, overdrafts, etc.
Tips for successful financial management that we will learn about in financial management training
Effective financial management is critical to the survival and development of the organization. Includes planning, organizing, controlling and controlling your money to achieve your business goals.
Good financial management will help your business use resources efficiently, And to meet commitments to shareholders, and gain a competitive advantage, And a willingness to financial stability in the long run.
Financial management must be part of the main operations of your business and included in an ongoing plan.
Your money can make you feel complicated and confused, But the following 10 tips will help you manage them.
1. You have a clear business plan
The action plan will determine where you are and where you want to be in the next few years. You have to detail how you will finance your work and activities, And what money will you need, And where will the money come from, which is one of the most important tips we’ll provide during financial management training.
2. Monitor your financial situation
You should monitor your business progress regularly. Every day You should know how much money you have in the bank, The number of sales you have achieved and the level of your assets. You should also check your position monthly against the goals set out in your business plan. It is one of the most important tips we will provide during training in financial management
3. Make sure customers pay on time
Companies can face major problems due to delays in customer payments. to reduce the risk of delay or non-payment, You should be clear about your credit terms and conditions from the outset. You should also issue clear and accurate invoices quickly. Using a computerized credit management system will help you track customer accounts. It is one of the most important tips we will provide during training in financial management
4. Learn about your daily costs
Even the most profitable companies can struggle without enough money to cover daily costs such as rent and wages. You need to know the minimum your business needs to stay and make sure you don’t fall under it. It is one of the most important tips we will provide during training in financial management
5. Keep up-to-date accounting records
If your account is not updated in time, You risk losing money by not keeping up with late payments from customers or not realizing when to pay suppliers. Using a good record-keeping system will help you track expenses, debts and creditors, and apply for additional funding, Saving time and accounting costs is one of the most important tips we will provide during training in financial management
6. Meeting tax deadlines
Failure to file tax returns and make payments on time may result in fines and interest. These are unnecessary costs that can be avoided by some advance planning. Accurate registration of your watches and money can save you money, You can only be sure that you pay your taxes. therefore Fulfilling commitments is important. It is one of the most important tips we will provide during training in financial management
Is your business working efficiently? By implementing behavioral changes and using existing equipment more efficiently, Energy can be saved, Thus saving money. This is one of the easiest ways to cut costs. Areas of interest for the regular office include heating, lighting, office equipment and air conditioning, which is one of the most important tips we will provide during financial management training
8. Inventory control
Effective inventory control ensures that you have the right amount of available inventory in a timely manner so that your money is not unnecessarily restricted. You must have a system to track your inventory levels – controlled by capital release with the right amount of inventory also available and one of the most important tips we will provide during financial management training
9. Get the right funding
Choosing the right type of financing for your company is critical — each type of financing is designed to meet different needs. Small businesses often rely more on business and personal overdrafts, But this may not be the best way to fund your business and it’s one of the top tips we’ll provide during financial management training.
10. Address problems when they appear
It’s always hard to face financial problems as a business, But there are some help and tips that can help you solve the problem before it becomes intractable, So seek professional advice as soon as possible. There are also some initial steps you can take to minimize the impact, Such as dealing with large debts first and evaluation, which is one of the most important tips we will provide during financial management training